How Inclusive Is Financial Inclusion in India?

Abstract

Since, 2006 Financial inclusion got its attention in India. In 2014 Government has initiated various focussed programmes like Savings, Credit, Insurance and Pension services to include the financially excluded people in banking system. The objective of These programmes was to have 100 percent financial inclusion and financial literacy in the country. This study has been examined at world level by including 264 countries to check the financial position of India at global level and to check the impact of recent financial inclusion schemes in the country. In this study we have used financial inclusion index to represent the financial inclusion position in India. Regression Model with dichotomous variable has been used to check is there any significant change IFI with respect recent financial inclusion schemes. The overall financial inclusion position is not much improved. India have achieved low financial inclusion which scales between (IFI. 0 ≤ FII ≤ 0.4; indicates low financial inclusion, LFI.)